Sharechat Logo

Clegg and Co latest finance company to fail

Friday 5th October 2007

Text too small?
Another finance company has hit trouble, with the receivership of Auckland-based financier Clegg and Co Finance which has left little in the way of shareholders' funds.

Brian Mayo-Smith and Shaun Adams of BDO Spicers have been appointed receivers after Clegg and Co told the Covenant Trustee Company on September 27 that its trust deed had been breached to a "significant extent".

Covenant Trustee Co ordered the receivership after Clegg and Co directors and shareholders were unable to rectify the breach of the company's related party loan restriction clause, Covenant managing director Graham Miller said.

"In Covenant Trustee Company's view, the level of provisioning required against this Related Party debt means that Clegg & Co Finance has minimal if any residual shareholders funds," Miller said.

Clegg and Co Finance was founded by Brian Clegg in April 2002, and finances commercial plant finance leases and other secured lending contracts, according to the company's web site.

Clegg had earlier set up Classic Finance in 1995 to finance hire purchases and other secured lending, mainly second mortgages.

Nine finance firms have already collapsed in 16 months, owing investors $1.2 billion.

Sign up to the Weekly Wrap, a summary of the week's top news stories for financial advisers. Visit www.goodreturns.co.nz


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SPG - Change to Executive Team
BGI - Forgiveness of $200,000 of secured indebtedness
General Capital Subsidiary General Finance Market Update
AFT,Massey Ventures,Gilles McIndoe to develop scar treatmen
April 24th Morning Report
Cheers to many fewer grape harvest spills
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained